MEDICAID: HOW TO MANAGE THE COST OF STAYING IN A NURSING HOME

P. Haans MulderCunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) 392-1821phmulder@holland-law.com

The Village at Appledorn

Background

• Grew up in Holland• Attorney and Partner at Cunningham

Dalman, P.C.• Have a Masters in Tax (MST) and specialize

in estates/elder law and business planning

Serving the Holland area since 1900

Background

• Cunningham Dalman, P.C. is located in Holland and has been serving the greater Holland area since 1900

• We have 15 attorneys specializing in all areas of the law

Serving the Holland area since 1900

Family

Two Goals• Want to encourage you to think about

what to do if you or your spouse needs to move into a nursing home

• Educate you about applying for and becoming eligible for Medicaid

Serving the Holland area since 1900

Overview

• Discuss the Medicaid process and rules• Cover the what, who, when, where, and

how’s…. • Give you an example of how the process

worked

Serving the Holland area since 1900

What is Medicaid?• State and federal program that pays

for medical treatment (including nursing home care)

• Oftentimes confused with Medicare

 

Serving the Holland area since 1900

When does Medicaid apply?• Must be in a nursing home or be in

certain counties that have the MI Choice Waiver program

• Program can provide nursing home level of care in a person’s home

Serving the Holland area since 1900

Who does Medicaid apply to?

• Applies to people who are 65 years or older, blind, or disabled

• Must satisfy the medical requirements (have level of care assessment done)

• Must meet income and asset tests

Serving the Holland area since 1900

Who does Medicaid apply to?

• You cannot have enough income to pay the monthly cost of staying in a nursing home ($6-7,000 in this area)

• Cannot earn more than $2,022/month for the MI Choice Waiver program

Serving the Holland area since 1900

Who does Medicaid apply to?

• Asset test requires that a single person cannot have more than $2,000 in countable assets

• You can keep your home (if it’s owned properly) and a vehicle

Serving the Holland area since 1900

Who does Medicaid apply to?

• Asset test allows a married couple to keep their home (again, if it’s owned properly), a vehicle, and one-half of their other assets

Serving the Holland area since 1900

Where do you apply?• Apply for Medicaid at the Department

of Human Services (DHS)

• DHS offices are located in each county

• Apply to the county office that the nursing home is located

 

Serving the Holland area since 1900

Example• Clients were husband and wife

• Drafted an estate plan for them

• A couple years later, the wife’s health declined significantly and had to go to a nursing home

Serving the Holland area since 1900

Example

• She didn’t stay in a hospital for three days so Medicare didn’t cover any of the stay at the nursing home

• They had a house, vehicle, and investments

Serving the Holland area since 1900

Example

• Could keep the house (because it was properly owned) and their vehicle

• Without any Medicaid planning, they would have had to spend down one-half of their investments

Serving the Holland area since 1900

Example

• Drafted a trust that allowed them to protect all of their investments (as opposed to just half)

• This provided peace of mind to the husband

Serving the Holland area since 1900

Return to Two Goals• Want to encourage you to think about

what to do if you or your spouse needed to move to a nursing home

• Educate you about applying for and becoming eligible for Medicaid

Serving the Holland area since 1900

Questions……

Serving the Holland area since 1900

Thank YouP. Haans MulderCunningham Dalman, P.C.321 Settlers RoadHolland, MI 49423(616) 392-1821phmulder@holland-law.comwww.holland-law.com

Serving the Holland area since 1900